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One of the best investments in your lifetime is buying a house. Age does not matter when purchasing a property. However, if you are a senior citizen, it is crucial to consider reviewing your financial portfolio and seek the advice of a financial advisor to learn whether it is wise to pursue such an investment. 

It is also vital to work with a seasoned real estate agent who understands the local market and can assist you in buying a property at a reasonable price. With the help of an experienced agent, you have greater chances to find a house that fits your preferences. 

Read this article to help you decide whether buying a house at a senior age is good for you and know the various options you can take. 

Factors to Consider When Buying a House at 65

You are not too old to purchase a house at 65 years old as long as you have the financial means to cover the down payment, monthly mortgage, property tax, and maintenance expenses. 

However, retirees or folks nearing retirement age should look at their source of income if it can support this investment for the long term. For people aged 65 years and above, it is difficult to be sure whether you will live in the property long enough and reap some return on investment.

Another factor to consider is the housing market. What if the property you buy does not appreciate and the mortgage payments prove to be a financial burden? In this situation, selling the house can be the best way to cover your debt.

Before the home purchase, you should hire an agent who can help you find a property that can appreciate in a short time. 

Buying vs. Renting a House in Retirement

Your financial situation and goals will determine whether buying or renting a house in retirement is the best choice for you. Consider the pros and cons of these two options to help you decide. 

Buying a House in Retirement

Be sure to have a healthy income and assets when purchasing a house in retirement. Consider how you can finance the purchase, and avoid borrowing a large loan if you do not have the means to pay it. 

The advantage of owning a property in retirement is you do not have to pay rent. You can also build equity through your mortgage payments or increase the value of the house through upgrades and renovations. 

The downside of buying a house in retirement is paying for property taxes, insurance, and repairs/maintenance. Waiting for several years for the property to appreciate can also be a disadvantage during this time. 

Renting a House in Retirement

There are advantages to renting a house if you are a senior, But, of course, there are also some disadvantages. 

If you are renting a house, you need not worry about mortgage, property taxes, insurance, and repair expenses. You also have the freedom to move to another property or area if need be. 

However, one of the downsides includes annual rent increases that make it hard for you to afford the rent. Another disadvantage is you cannot renovate or upgrade the property. 

Financing Your Home Purchase in Retirement

You can apply for a mortgage even if you are 65 years of age or older. The Equal Credit Opportunity Act guarantees the right of seniors to get financing by prohibiting age discrimination. However, lenders perform risk assessments when lending money, and it can be more difficult for seniors to qualify for a mortgage based on their income in retirement. 

Lenders have to ensure you can afford the down payment. In this case, you need to have assets that are accessible for such an expense. Retirement funds such as IRAs and 401(k)s may not enable you to qualify if they are solely your source of income. Retirees who have assets locked in their retirement accounts may have difficulty getting financing for a home purchase. 

Consider applying for a Federal Home Administration (FHA) loan or a Veterans Affairs (VA) loan if you find it difficult to qualify for conventional loans. Ensure you have a good credit score and a low debt-to-income ratio before your home loan application. 

It will be wise if you consult with a buyer’s agent or a financial advisor who understands the lending procedures in your area before applying for home financing. 

Final Thoughts

It is up to you if you purchase a house in your senior year. However, there are some things to consider to ensure such an investment is beneficial to you. You may have a limited source of income in retirement, and paying for a mortgage, property tax, and insurance can be difficult for you financially. 

You need also to consider if the property you buy has the potential to appreciate in a short time. Ensure that you can reap a good return on your investment even in your old age.